CWB Offers Larger Pool Payout

WINNIPEG - Jul 9/01 - STAT -- An experimental program Canadian Western Red Winter wheat (CWRW) and Canadian Western Soft White Spring wheat (CWSWS) growers will give them a chance to get a bigger portion of the expected final price when they deliver their grain.

Called an Early Payment Option (EPO), it will run from August 1 to November 30. Under it growers get the standard initial payment when they deliver their grain; followed by an additional payment when the Canadian Wheat Board (CWB) receives the delivery information.

This will lift the total initial payment to 90% of the Pool Return Outlook less a discount for risk, time value of money and the applicable administrative costs.

The CWB believes those who deliver early on the EPO will derive a greater benefit from the program. As the crop year progresses, the spread between the initial and final payment traditionally narrows, thus reducing the size of the additional payment that farmers access under the terms of the EPO.

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